difference between national banks and public sector banks with examples?
Can I give and questions
As i am a commerce student i want to correct u all .public bank are those bank who can issue shares and debentures.
Those bank whose 51 percent share are with govt they are government bank
U just see
Sbi issue their shares
And much more
Its doesn't mean their shares are purchase by govt more than 50%
National bank held only indain gvmt...but public to abbord or any single company. ...all national bank are under in RBI..
tanq bhayya @ srikanth
Public Sector Banks - Those banks where at least 51% of share is held by govt.
Nationalised banks -Those banks which were initially private banks and later its majority of shares were undertaken by govt.
Nationalisation is a process where by a national govt or state govt takes over the private industry, organization or assets into public ownership by an act or ordinance or some other kind of orders.
Indira Gandhi nationalized banks.
1st Nationalisation,(19-07-1969) - 14 banks.
2nd Natnlztn,(15-04-1980) - 6 banks.
Later New bank of India was merged with Punjb Natnl Bnk in 1993.
.`. Total no of Natnlsd banks- 19 banks.
All Natnlsd banks are Public Sector Banks but all public sector banks are not Natnlsd banks.
SBI,SBI Associates(Travncore, Hydbad, mysore, bikaneer&jaipur, patiala)- 5 , IDBI & BMB are public Sector banks- 8 banks.
[note: associate banks indore and saurashtra were merged with SBI].
.'. Total no of Public Sector banks - 19 + 8 = 27.
Public sector bank is called national bank
Nationalised banks are those banks where the Govt. holds more than 51 % of the paid up equity sharecapital and the management of the banks are vested in the hands of the Govt. nominated Directors .The private banks are those where the share capital is held by the public not the Govt. And the management is vested in the hands of Directors elected by share holders.The banking policy for both private n nationalised banks are framed by the Central Bank.In India the RBI is the central bank.